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URL:  https://boards.fool.com/earnings-reported-20463932.aspx

Subject:  Earnings Reported Date:  3/10/2004  9:24 AM
Author:  Donde Number:  307 of 322

JACKSON, Mich., Mar 10, 2004 /PRNewswire-FirstCall via COMTEX/ -- CMS Energy (CMS, Trade) announced today a 2003 reported net loss of $44 million, or $0.30 per share, compared to a loss of $650 million, or $4.68 per share, in 2002.

Excluding the impact of $1.11 per share in asset writedowns and other charges, ongoing earnings for 2003 were $0.81 per share, or $122 million, in line with the Company's guidance of $0.80 to $0.90 per share. On a comparable basis, ongoing earnings for 2002 were $0.84 per share on net income of $117 million.

Ongoing (non-Generally Accepted Accounting Principles) earnings provide a key measure of the Company's present operating financial performance, unaffected by discontinued operations, asset sales or other items detailed in the attached summary financial statements.

CMS Energy also announced its guidance for 2004: a reported net loss of about $0.50 per share and ongoing earnings growth to about $0.85 per share. The reported guidance reflects losses anticipated from the sale of certain international assets.



CMS Energy 2003 highlights included:
* 15 assets sold for $2.1 billion and net proceeds of nearly $850 million
* Consolidated debt reduced by $1.1 billion
* $3.8 billion refinanced to extend debt maturities and lower interest
costs
* $560 million contributed to the pension plan, fully funding all
accumulated obligations
* Consumers Energy's gas utility ranked highest for customer satisfaction
in the Midwest for the second straight year by J.D. Power and
Associates
* Consumers Energy ranked No. 2 nationally in a University of Michigan
survey of customer satisfaction for combined electric and gas
utilities.
* Electric utility met all 10 performance standards set by the Michigan
Public Service Commission
* The Company's utility and non-utility generating plants set production
records

The Company also noted it had restated its 2001 and 2002 financial statements to properly account for certain derivative instruments held by some international affiliates. The Company owns a minority interest in those affiliates. CMS Energy's 2003 10-K filing will detail the restatements, which increased the 2002 loss from $4.46 per share to $4.68 per share.

CMS Energy's chairman and chief executive officer, Ken Whipple, said the 2003 results and 2004 guidance reflect the progress the Company is making with its "utility-plus" strategy.

"Our goal is to become a smaller, stronger company with our utility, Consumers Energy, as the primary focus. The 'plus' part is our non-utility energy businesses -- independent power projects, gas and electric distribution units, and gas pipelines -- that are important to our cash flow and earnings," Whipple said.

"We will continue to execute our financial improvement plan and meet our commitments. We have this Company moving in the right direction and will maintain our focus on operational excellence, increasing our financial flexibility, and reducing debt."

CMS Energy is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.

For more information on CMS Energy, please visit our web site at: www.cmsenergy.com



CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Condensed Consolidated Income Statements
(Millions, Except Per Share Amounts)
Fourth Quarter Twelve Months
(Unaudited)
2003 2002 2003 2002
Operating Revenue $1,372 $1,736 $5,513 $8,673
Earnings from Equity
Method Investees 39 (3) 164 92
Operating Expenses 1,306 2,255 5,082 8,690
Operating Income (Loss) $105 $(522) $595 $75
Other Income (Deductions) 12 (30) 14 -
Fixed Charges 139 123 594 508
Income Tax Expense (Benefit) 10 (162) 58 (41)
Minority Interests 3 - - 2
Income (Loss) from Continuing
Operations $(35) $(513) $(43) $(394)
Income (Loss) from
Discontinued Operations 43 (120) 23 (274)
Cumulative Effect of
Accounting Changes - - (24) 18
Net Income (Loss) $8 $(633) $(44) $(650)
Earnings (Loss) Per Share
Basic $0.05 $(4.40) $(0.30) $(4.68)
Diluted 0.05 (4.40) (0.30) (4.68)
CMS Energy Corporation
SUMMARIZED COMPARATIVE BALANCE SHEETS
(Millions of Dollars)
December 31 December 31
2003 2002
Assets
Cash and cash equivalents $532 $351
Restricted cash 201 38
Other current assets 1,761 2,350
Total current assets $2,494 $2,739
Net plant and property 6,944 6,103
Investments 1,390 1,369
Non-current assets 3,010 4,570
Total assets $13,838 $14,781
Stockholders' Investment and Liabilities
Capitalization
Debt
Long-term debt (excluding Securitization
and Related Parties) $5,622 $4,931
Capital leases 58 116
Notes Payable - 458
Current portion of long-term debt and
capital leases (excluding securitization) 491 619
Total debt $6,171 $6,124
Preferred stock and securities 305 927
Minority interest 73 38
Common stockholders' equity 1,585 1,078
Total capitalization $8,134 $8,167
Securitization debt 426 453
Long-term debt - Related Parties 684 -
Current liabilities 980 1,785
Non-current liabilities 3,614 4,376
Total Stockholders' Investment and Liabilities $13,838 $14,781
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
Twelve Months
2003 2002
Beginning of Period Cash $351 $123
Cash (used in) provided by operating
activities $(251) $614
Cash provided by investing activities 203 829
Cash used in financing activities 230 (1,223)
Currency Translation Adjustment (1) 8
Total Cash Flow $181 $228
End of Period Cash $532 $351
CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income (Loss) to
Non-GAAP Ongoing Net Income (Loss)
(Millions, Except Per Share Amounts)
Fourth Quarter Twelve Months
(Unaudited)
2003 2002 2003 2002
Net Income (Loss) $8 $(633) $(44) $(650)
Reconciling Items:
Discontinued Operations
(Income) Loss (43) 120 (23) 274
Cumulative Effect of
Accounting Changes:
EITF #02-03 MTM Accounting - - 23 -
SFAS No. 143 Asset Retirement
Obligation - - 1 -
SFAS No. 133 Derivative
Accounting - - - (18)
Net Asset Writedowns 23 458 79 458
Loss of Tax Benefits - 13 - 54
Net Asset (Gain)/Loss and Other 48 18 86 (1)
Ongoing Net Income (Loss) - Non-GAAP
Basis $36 $(24) $122 $117
Average Number of Common Shares
Outstanding
Basic 161 144 150 139
Diluted 166 148 155 143
Basic Earnings (Loss) Per Average
Common Share
Earnings (Loss) Per Share as
Reported $0.05 $(4.40) $(0.30) $(4.68)
Reconciling Items:
Discontinued Operations (Income)
Loss (0.27) 0.83 (0.16) 1.97
Cumulative Effect of Accounting
Changes:
EITF #02-03 MTM Accounting - - 0.15 -
SFAS No. 143 Asset Retirement
Obligations - - 0.01 -
SFAS No. 133 Derivative
Accounting - - - (0.13)
Net Asset Writedowns 0.14 3.18 0.52 3.29
Loss of Tax Benefits - 0.09 - 0.39
Net Asset (Gain)/Loss and Other 0.30 0.14 0.59 -
Ongoing Net Income (Loss) - Non-GAAP
Basis $0.22 $(0.16) $0.81 $0.84
Diluted Earnings (Loss) Per Average
Common Share
Earnings (Loss) Per Share as
Reported $0.05 $(4.40) $(0.30) $(4.68)
Reconciling Items:
Discontinued Operations
(Income) Loss (0.27) 0.83 (0.16) 1.97
Cumulative Effect of
Accounting Changes:
EITF #02-03 MTM Accounting - - 0.15 -
SFAS No. 143 Asset Retirement
Obligations - - 0.01 -
SFAS No. 133 Derivative
Accounting - - - (0.13)
Net Asset Writedowns 0.14 3.18 0.52 3.29
Loss of Tax Benefits - 0.09 - 0.39
Net Asset (Gain)/Loss and Other 0.30 0.14 0.59 -
Ongoing Net Income (Loss) -
Non-GAAP Basis $0.22 $(0.16) $0.81 $0.84

SOURCE CMS Energy


Media, Jeff Holyfield, +1-517-788-2394, or Dan Bishop,
+1-517-788-2395, or Investment Analyst, CMS Energy Investor Relations,
+1-517-788-2590

http://www.cmsenergy.com

Copyright (C) 2004 PR Newswire. All rights reserved.




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